Back
2 Apr 2014
EUR/USD keeps below 1.3800
FXStreet (Edinburgh) - The single currency remains on the back footing on Wednesday, with the EUR/USD hovering over 1.3785/80, the lower band of the range.
EUR/USD focus on the ECB
The EUR remains resilient around the 1.3800 barrier today, prolonging its rebound from recent lows near 1.3700 the figure. It is all about the ECB meeting tomorrow, with market participants coinciding it will be a very close call. It is worth noting that softer inflation figures in the region during February prompted investors to price in further monetary easing by the ECB, however, later appreciations by ECB members poured cold water over those speculations. “We suspect there will be a significant euro move tomorrow. The failure to act could trigger another wave of euro buying, similar to last month. A break of $1.40 would likely trigger stop loss buying. On the other hand, if the ECB does not ease, the market could ease for them by taking the euro lower. Given the resilience of the euro and the deeply held belief that the first Fed hike is still more than a year away (and the world is still awash with liquidity), we are more inclined to the former than the latter”, assessed analysts at BBH.
EUR/USD significant levels
At the moment the pair is losing 0.04% at 1.3788 and a breakdown of 1.3768 (low Apr.1) would open the door to 1.3721 (low Mar.31) and finally 1.3716 (55-d MA). On the upside, the initial hurdle lines up at 1.3827 (high Mar.26) ahead of 1.3828 (21-d MA) and then 1.3848 (high Mar.25).
EUR/USD focus on the ECB
The EUR remains resilient around the 1.3800 barrier today, prolonging its rebound from recent lows near 1.3700 the figure. It is all about the ECB meeting tomorrow, with market participants coinciding it will be a very close call. It is worth noting that softer inflation figures in the region during February prompted investors to price in further monetary easing by the ECB, however, later appreciations by ECB members poured cold water over those speculations. “We suspect there will be a significant euro move tomorrow. The failure to act could trigger another wave of euro buying, similar to last month. A break of $1.40 would likely trigger stop loss buying. On the other hand, if the ECB does not ease, the market could ease for them by taking the euro lower. Given the resilience of the euro and the deeply held belief that the first Fed hike is still more than a year away (and the world is still awash with liquidity), we are more inclined to the former than the latter”, assessed analysts at BBH.
EUR/USD significant levels
At the moment the pair is losing 0.04% at 1.3788 and a breakdown of 1.3768 (low Apr.1) would open the door to 1.3721 (low Mar.31) and finally 1.3716 (55-d MA). On the upside, the initial hurdle lines up at 1.3827 (high Mar.26) ahead of 1.3828 (21-d MA) and then 1.3848 (high Mar.25).